GST DAILY – 103 – ITC IS REQUIRED TO BE REVERSED WHEN GOODS ARE DESTROYED IN THE FIRE ACCIDENT

In the case of  GEEKAY WIRES LIMITED The TELANGANA bench of AAR decided on 02.09.2023

Issue:-

✔️ When ITC Is Required To Be Reversed?

Replies:-

ITC IS REQUIRED TO BE REVERSED WHEN

 ✔️ Raw materials purchased are already used in the manufacture of finished goods and the finished goods are destroyed in the fire accident completely.

✔️ Raw materials procured are lost in the fire accident before use in manufacture of finished goods.

✔️ Destroyed finished goods can be sold as steel scrap in the open market and output tax liability on such supply of scrap is paid.